JPMorgan Tests Blockchain Solution To Track Automobile Inventory
- JPMorgan is testing a new blockchain solution that it would allow it to track auto dealer inventory. In this way, it would be possible for companies to avoid linking the same cars for different loans.
- The information was unveiled in a recent patent filed by the car financing arm.
JPMorgan Develops Blockchain Solution For The Automotive Industry
The patent describes a blockchain lending system that would allow car companies to handle car loans and their inventories.
It is worth mentioning that each of the cars in the market has an individual vehicle identity number (VIN). In this way and with the help of a blockchain system, it is possible to reduce inefficiencies in the industry and improve loans, services and solutions.
According to the head of research and development at Chase Auto, there is a responsible person that identifies each of the vehicles and reconciles the inventory on the dealer’s and the bank’s systems.
Clearly, this is an inefficient way of handling loans and inventories. This is why JPMorgan, with several years of blockchain experience, is trying to offer improved solutions in the industry.
Christine Moy, blockchain lead at JP Morgan, mentioned that the pilot is being tested with some partners but it is not ready to be released to the market as of yet.
Blockchain technology has been expanding during the last few years and several companies, including JPMorgan, are offering solutions to clients and other firms.
The automotive industry is also very important for the U.S. economy and it is clearly a large market for it to have old financial and tracking systems.
This is not the first time that JPMorgan is working with distributed ledger technology. The firm has also been developing its own permissioned blockchain network that would allow the bank to improve its presence in the market and offer better services.
It is possible for dealerships to pledge the same vehicle as collateral for one floor plan with one bank and using the same car for another floor plan and with another bank. With this new blockchain system that is currently being tested, this problem is solved and the whole system becomes much more efficient and fast.